Lakhasly

During the last few decades, the Polish banking market has changed remarkably.It may be an inspiration for further research aimed to build a model taking into account both external and internal factors influencing banks' sustainable market efficiency and performance The practical implication of the finding is the recommendation for banks' decision makers to base their market strategies only on factors that help to gain a long-term sustainable competitive advantage, market performance and efficiency.The findings are relevant to Shih (2008) who recognised the importance of innovations and IT. The results correspond with some previous research conducted on the banking market and others markets that showed the dominance of human capital and employees incentives (Blazevic & Lievens, 2004, Jong & Hartog, 2007, Curado, 2008, Liao, Chen, Hu, Chung & Liu, 2017, Davydenko et al, 2017; Atkociuniene, Praspaliauskyte, 2018; Waheed, Kabiru & Umair, 2018) and the impact of strategic management on the ability to create long-term relationship with customers and value creation (Kianto, Andreeva & Pavlov, 2013).The factors analysis proved that in contemporary economy banks should base building competitive advantage and sustainability on those strategic resources that are strictly connected with their innovation capability.The second factor that impacts the bank's efficiency includes financial parameters as the level of equity, the level of assets, profits and liquidity.The results provide that building innovation capability is strictly connected with organisational culture and require specific leadership encouraging employees to be creative, entrepreneurial and motivated to create long-term relations with customers.The regression analysis proved the importance of strategic capability for the bank's efficiency of equity management.

During the last few decades, the Polish banking market has changed remarkably. Opening the market for foreign
investors has increased the number of bank and credit institutions. The assets of the Polish banking market has
been systematically growing and has become one of the most competitive markets in Europe. Although the new
market player has already entered the banking market, banks remain the most crucial market player with over 70
per cent of market assets share. Such a situation correspond to other banking markets in Europe. The market
condition has made banks to search for factors enabling them gaining competitive advantage.
The factors analysis proved that in contemporary economy banks should base building competitive advantage and
sustainability on those strategic resources that are strictly connected with their innovation capability. Among
them, the most important are those that allow a bank to improve products, services and processes. The findings
are relevant to Shih (2008) who recognised the importance of innovations and IT. The results correspond with
some previous research conducted on the banking market and others markets that showed the dominance of
human capital and employees incentives (Blazevic & Lievens, 2004, Jong & Hartog, 2007, Curado, 2008, Liao,
Chen, Hu, Chung & Liu, 2017, Davydenko et al, 2017; Atkočiūnienė, Praspaliauskytė, 2018; Waheed, Kabiru &
Umair, 2018) and the impact of strategic management on the ability to create long-term relationship with
customers and value creation (Kianto, Andreeva & Pavlov, 2013). Such an ability is the heart of open and userdriven innovation approaches (Hoffmann & Prause, 2015).
The regression analysis proved the importance of strategic capability for the bank's efficiency of equity
management. The second factor that impacts the bank’s efficiency includes financial parameters as the level of
equity, the level of assets, profits and liquidity. The results gave no evidence for a direct correlation between any
of competitive advantage factors and the efficiency of asset management. They correspond to the research
conducted by Nekrep (2013) that did not prove the influence of a bank’s internal innovation capability on their
market performance.
The results provide that building innovation capability is strictly connected with organisational culture and require
specific leadership encouraging employees to be creative, entrepreneurial and motivated to create long-term
relations with customers. Concurrently, the findings indirectly proved the complex character of factors
influencing banks’ market performance and show that it is difficult to extract particular factors influencing banks’
sustainable market efficiency. It may be an inspiration for further research aimed to build a model taking into
account both external and internal factors influencing banks’ sustainable market efficiency and performance
The practical implication of the finding is the recommendation for banks’ decision makers to base their market
strategies only on factors that help to gain a long-term sustainable competitive advantage, market performance
and efficiency. As those factors are related to fulfilling customers’ needs and expectations, such a market attitude
will also be beneficial for society and economy.
As many factors influence the bank market performance, the scope of the research might be its limitation.
Although the Polish banking market is one of the most competitive and stable banking markets in Europe, the
results cannot be directly extrapolated to other banking markets.